We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Fraud on the Community: What It Means for Asset Division in Divorce
Definition & Meaning
Fraud on the community refers to the intentional concealment or fraudulent transfer of shared assets in a marriage, typically occurring before a divorce or the death of one spouse. This action aims to prevent the other partner from claiming their rightful share of the property. This term is primarily relevant in community property states, where assets acquired during the marriage are considered jointly owned by both partners.
Table of content
Legal Use & context
This term is commonly used in family law, particularly in divorce proceedings. It highlights the unethical actions of one spouse in hiding or mismanaging community assets to gain an unfair advantage. Legal professionals may address fraud on the community during asset division negotiations or court hearings. Users can manage some aspects of this process by utilizing legal templates from US Legal Forms, which can help in drafting necessary documents.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(hypothetical example) A spouse sells a jointly owned vacation home without informing the other spouse, intending to keep the proceeds from the sale hidden. This action could be classified as fraud on the community.
(hypothetical example) A partner transfers money from a joint account into a personal account just before filing for divorce, aiming to reduce the amount available for division. This could also be considered fraud on the community.
State-by-state differences
State
Community Property Rules
Fraud on the Community Implications
California
Community property state
Strong protections against fraud; courts may impose penalties.
Texas
Community property state
Fraud can lead to a more favorable division for the defrauded spouse.
Florida
Equitable distribution state
Fraud can affect asset division but not classified as community property.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Differences
Fraud on the community
Intentional concealment or transfer of community assets.
Specific to community property states and marriage.
Asset concealment
Hiding assets in any legal context.
Broader term not limited to marital relationships.
Divorce fraud
Fraudulent actions during divorce proceedings.
Can include various forms of deceit beyond asset concealment.
Common misunderstandings
What to do if this term applies to you
If you suspect fraud on the community, gather documentation of the assets in question and any evidence of concealment or transfer. Consider consulting a legal professional for advice tailored to your situation. You may also explore US Legal Forms for templates that can assist in filing necessary documents or claims related to asset division.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.